Transcription
Abbott’s SAP StoryThe beginning of our journey .
Our StoryAbbott OverviewWho We WereHow the Journey BeganFinding the Silver LiningThe ProgramStaying the CourseWhere do we go from here?SAPPHIRE Abbott SAPMay, 2013Company Confidential 2013 Abbott2
AbbottEvolving Portfolio of Growth BusinessCompany FactsSales GeographyoFounded in 1888, Dr. Wallace C. AbbottoChairman & CEO – Miles Whiteo 22 Billion Net Sales across 150 countrieso70,000 employeesNutrition 6.5 B Sales #1 in Adult Nutrition #1 in U.S. Pediatric 38% Emerging Markets 30% United States 32% Ex – U.S. Developed WorldDiagnosticsMedical Devices 4.3 B Sales #1 in ImmunoassayDiagnostics #1 in BloodScreening Leading Point ofCare Platform 5.5 B Sales #1 in Drug eludingstent, metal stent #1 in LASIK #2 in CataractEstablishedPharmaceuticals 5.1 B in Sales 60% EmergingMarkets 630M Market #1 Klacid, Creon,Duphason* 2012 SalesSAPPHIRE Abbott SAPMay, 2013Company Confidential 2013 Abbott3
Who We WereBusiness Dynamics & System LandscapeOrder to InvoiceNew Product Setup12,000 orders/day37 days50% electronic15 departments10 systems (inc mainframe)Manual5700 users/14,000 SAP roles4TB data/ 62MB never archivedNo Global Chart of Accounts857 direct interfaces156 direct/250 indirect legacy systemsAnalytical Tool – Excel extractsSAPPHIRE Abbott SAPMay, 2013Company Confidential 2013 Abbott
How did our journey begin?Fragmented processesDiscontinuing SAP SupportOtherERPUnstableSAPLack of scalabilityOtherLegacyInefficient deploymentsERP Landscape DriversExternalDrivers(Y2K)SAPPHIRE Abbott SAPMay, 2013Company Confidential 2013 AbbottMergers &AcquisitionsFocus onDivisionalneeds5OverdueUpgrades
Finding the silver liningOpportunity for introspection and reinventionCommonality ResponseLow CommonalityMedium Commonality% of Process0%20%40%Order to Cash 9% 18%Operations - Manufacturing 11%Record to ReportSAPPHIRE Abbott SAPMay, 2013Company Confidential 2013 Abbott50%56%33%48%Operations - Quality19%52%81%23%680% 100%73%50%Supply Chain Planning & ExecutionProcure to Pay60%High Commonality77%
The Program .foundation to sustain existingbusiness imperativesLargest IT investment in AbbottScopeooooECCSRMeWMCognosHow We Did Itooooo Clear GovernanceVistexVertexcApps (Master Data)TIBCOo Strong supplier partnershipso Key operating decisions/guidingprinciplesBy the Numbers o Weekly program/monthly executiveleadership meetingso 300 Program (Business, IT,Consultants) plus offshore resourceso Team Co-Locationo 500 Global subject matter expertso Dedicated change managemento 8000 Current end userso 12 Divisions/corporate functionso Command centers for Go-Liveso 17 Geographic locationso Expanded cafeteria serviceso Stay calm, be niceSAPPHIRE Abbott SAPMay, 2013Company Confidential 2013 Abbott7
Staying the course Adjusting for curves5 manufacturing deploymentsSAP Cloned and SeparatedAbbott Separation2013SAP Ready for Company Separation11 deployments3 technical releases20122011Company Separation announcedBuilt global template with113 integrated processes2010SAPPHIRE Abbott SAPMay, 2013Company Confidential 2013 Abbott8
Staying the course Benefits Scale and agility driven by foundational design Ability to execute and accommodate M&A Commonality of business operations Support large scale business transformation Future leverage to optimize assets / grow top line Retire redundant legacy landscapeSAPPHIRE Abbott SAPMay, 2013Company Confidential 2013 Abbott9
Where do we go from here Go fast Ability to execute, stabilize and standardize existing business New level of business leadership to enable business transformation Simplification and process adoptionFUNDAMENTALSBusiness Decision-MakingRisk ManagementFocus on Business Operating ModelData, Data, DataBroadest scope of SAPLandscape ManagementMethodology & Logistics“Eco-system” of SAP –Integration and BISAPPHIRE Abbott SAPMay, 2013Company Confidential 2013 Abbott10
SAPPHIRE Abbott SAP 8 May, 2013 2010 2011 2012 Built global template with 113 integrated processes 11 deployments 3 technical releases Company Separation announced SAP Ready for Company Separation 2013 5 manufacturing deployments SAP Cloned and Separated Abbott Separation
